Deck 3: Managing Social Responsibility and Ethics

Question 1

Which federal law provides protection to whistleblowers who disclose financial fraud in publicly traded corporations?

A) The Foreign Corrupt Practices Act
B) Title VII
C) The ADA
D) Sarbanes-Oxley Act

Answer 1

D

Question 2

If Megan believes that she cannot engage in a course of action if it deprives other individuals of their fundamental human rights, which approach to ethical decision making best describes Megan?

A) Utilitarianism
B) Justice approach
C) Individualism
D) Rights approach

Answer 2

D

Question 3

A large company facing complex ethical issues in different markets may find a corporate credo is not specific enough. To provide more concrete guidelines and formulas for employee conduct, they may develop

A) an ethical policy statement.
B) a code of ethics.
C) a values statement.
D) a mission statement.

Answer 3

A

Question 4

Those groups or individuals with a vested interest in the performance of a firm are referred to as

A) stockholders.
B) stakeholders.
C) employees.
D) customers.

Question 5

Since a team is only as ethical as its "weakest ethical link," the team development process should include

A) distributing a copy of the corporate credo.
B) a review of whistleblower policies.
C) ethics training.
D) distributing a copy of the code of ethics for team members to sign.

Question 6

Which of the following is not considered a stakeholder?

A) Employees
B) Customers
C) Shareholders
D) Economy

Question 7

A formal statement of ethics and values that is designed to guide employee conduct in a variety of business situations is

A) a corporate credo.
B) a code of ethics.
C) an ethical policy statement.
D) a values statement.

Question 8

Which of the following is not one of the key ethical approaches to making business decisions?

A) Utilitarianism
B) Democratic approach
C) Individualism
D) Rights approach

Question 9

About 50% of workers surveyed admitted to engaging in at least one unethical act during the previous year. They believed ethical dilemmas could be reduced by

A) firing more unethical employees and making examples of them.
B) better communication and a serious commitment by managers to establish ethical standards of conduct.
C) providing more training and having managers hide inappropriate behavior.
D) better communication and more serious consequences for violating ethical codes.

Question 10

A code of ethics in an organization

A) guarantees employees will act in an ethical manner.
B) describes what is legal and illegal.
C) eliminates ethical dilemmas.
D) can create consensus regarding ethical principles.

Question 11

Which type of justice asks whether an employee received compensation equitable with performance?

A) Distributive
B) Utilitarianism
C) Procedural
D) Individualism

Question 12

In response to the Tylenol crisis in the 1980s, one factor Johnson & Johnson found helpful in effectively responding was

A) their corporate credo.
B) government legislation.
C) local law enforcement.
D) consumers.

Question 13

A specific guideline on how much technical information an employee can share with a competitor would be included in a company's

A) ethical policy statement.
B) code of ethics.
C) values statement.
D) corporate credo.

Question 14

An example of an ethical structure is

A) a whistleblower policy.
B) an ethics officer.
C) a corporate credo.
D) a values statement.

Question 15

Which approach to ethical decision making tends to be more flexible?

A) Individualism
B) Rights
C) Utilitarianism
D) Justice

Question 16

Which approach to ethical decision making is referred to as the "calculus of pain"?

A) Utilitarianism
B) Justice approach
C) Individualism
D) Rights approach

Question 17

Universities are likely to use which ethical structure to focus on allegations of unethical conduct such as faking research?

A) A whistleblower policy
B) A credo
C) An ethics committee
D) A values statement

Question 18

To establish an ethical corporate culture, which of the following approaches might be used?

A) Ethics training
B) Ethical structures
C) Whistleblower policies
D) all of the above

Question 19

The individualism approach to ethics reflects a ________ concern for individuals and a ________ degree of economic freedom.

A) high; low
B) low; high
C) high; high
D) low; low

Question 20

Jeremy's ethical decision making is guided primarily by his belief that his self-interests should be promoted as long as he doesn't harm others. What approach to ethical decision making does Jeremy use?

A) Utilitarianism
B) Justice approach
C) Individualism
D) Rights approach

Question 21

Which would you recommend to a team looking for ways to improve their ethical climate?

A) Require that all team members learn the code of ethical conduct.
B) Recognize and reward ethical behavior in team members.
C) Ensure that unethical behavior is not tolerated by the team.
D) all of the above

Question 22

A positive role model for corporate whistleblowers is

A) Kenneth Lay.
B) Jack Welch.
C) Milton Friedman.
D) Sherron Watkins.

Question 23

Which of the following is not true of most whistleblower policies?

A) The policy encourages reporting unethical conduct.
B) Those who report violations are protected from retaliation except when an informant is incorrect about the alleged wrongdoing.
C) Alternative reporting procedures are provided when those to whom the report must be given are involved in the wrongdoing.
D) A provision is made for anonymous reporting.

Question 24

A common approach companies use to avoid conflicts of interest in gift giving is to have a gift policy that

A) lists acceptable gifts.
B) limits the dollar value to a modest amount.
C) lists acceptable companies from whom to accept gifts.
D) requires gifts be donated to charities.

Question 25

When a manager gives flowers to her secretary on Secretaries Day, this is an example of

A) an ethical dilemma.
B) constructive gift giving.
C) an inappropriate gift.
D) a bribe.

Question 26

On the 2009 Corruption Perceptions Index, the United States scored

A) in the bottom 10%.
B) as the most ethical nation.
C) 19?? out of 180.
D) as the least ethical nation.

Question 27

The duty a company has to conduct its affairs ethically in a manner that benefits both employees and the larger society is known as

A) ethics.
B) a values statement.
C) profit maximization.
D) social responsibility.

Question 28

An example of a supervisor misusing discipline occurs when

A) using rumors as a basis to apply discipline to a targeted employee without giving the employee an opportunity to defend his or her conduct.
B) spending performance appraisal time focusing on areas of improvement.
C) terminating an employee for stealing a computer.
D) investigating plausible complaints of sexual harassment.

Question 29

A basic suggestion for ethical employee conduct in a romantic relationship in the workplace is

A) totally ban romantic relationships.
B) allow co-workers to take sides when a romantic relationships ends so the parties feel supported.
C) prohibit employees from dating people they directly supervise.
D) immediately transfer both parties when a romantic relationship ends.

Question 30

How can managers influence the ethical behavior of employees in their units?

A) Share useful information.
B) Keep confidences.
C) Respect employees.
D) all of the above

Question 31

Tips for making ethical business decisions include all of the following except

A) take time to learn the facts.
B) consider the financial facts.
C) identify the people impacted by the decision.
D) identify the ethical concerns.

Question 32

Research indicates that social responsibility

A) is related to higher financial performance.
B) requires a narrow focus on producing goods and services for profit only.
C) does not include caring for the natural environment.
D) does not impact the company's ability to recruit better quality job applicants.

Question 33

Countries like Iraq, Sudan, and Somalia that ranked low on the Corruption Perceptions Index are

A) the most ethical.
B) most likely to tolerate bribery as a business practice.
C) least likely to tolerate bribery as a business practice.
D) equal in the perception of ethics to the United States.

Question 34

The laws and ethics related to giving gifts in cultures outside the United States are

A) highly diverse.
B) significantly more rigid across all cultures.
C) significantly more loose across all cultures.
D) generally the same as the United States.

Question 35

Which of the following is not a guideline for giving discipline in a fair and impartial way?

A) Notify employees in advance of the company rules and consequences for violating them.
B) Investigate the facts of misconduct before applying discipline.
C) Be consistent in the response to rule violations.
D) Give a verbal warning to top performers when late and give a written warning to low performers when late.

Question 36

Which of the following is not a test of ethical decisions?

A) The good neighbor test
B) Personal gain test
C) Front-page test
D) Golden-rule test

Question 37

When a manager closely monitors the behavior of a disliked employee, looking for the opportunity to punish the employee, while giving more slack to employees who are favored by the supervisor is an example of which type of ethical dilemma at work?

A) Performance appraisal
B) Employee discipline
C) Romantic relationships
D) Gift giving

Question 38

Which of the following is a good guideline to follow when making ethical decisions?

A) Examine the consequences and avoid examining the proposed procedures.
B) Get feedback from a trusted friend before acting.
C) Avoid thinking too far ahead to the consequences of how the decision will look when made public.
D) Act quickly on your instinct before considering too many alternatives.

Question 39

When you ask yourself whether you would be willing to be treated in the same manner, which ethical test is being used?

A) The good neighbor test
B) Personal gain test
C) Front-page test
D) Golden-rule test

Question 40

A good first step in deciding the ethical appropriateness of accepting a gift from a vendor or employee is to think about

A) how much it costs.
B) the spirit in which it was given.
C) how a manager or co-worker would perceive the gift and the person who gave it.
D) how likely it would be that others would learn about it.

Question 41

Economist Milton Friedman argues that management should

A) focus only on financial returns.
B) focus only on corporate social responsibility.
C) focus both on financial and social responsibilities.
D) add social costs only if the company is making a profit.

Question 42

Large investors in companies

A) can put pressures on the boards of directors to dismiss CEOs.
B) want a reasonable financial return on their investment.
C) are more likely to be actively involved in influencing management through the board of directors or by voicing their concerns at shareholder meetings than small investors.
D) all of the above

Question 43

The Rainforest Action Network (RAN), People for the Ethical Treatment of Animals (PETA), and the National Council of Churches are examples of which type of stakeholder group?

A) Employees
B) Government
C) Community
D) Social activist groups

Question 44

Business ethics is the same thing as laws.

Question 45

In recognizing the importance of having officers set examples for enlisted personnel, the U.S. military holds officers to a higher standard of conduct than other military personnel.

Question 46

A firm that has let social responsibility dominate its business strategy in a way that distracted management's attention from earning profits is

A) Enron.
B) Ben & Jerry's Ice Cream.
C) Starbuck's
D) WorldCom.

Question 47

Eli Lilly & Company's policy that employees may not conduct business with a company with which they or their relatives are associated, unless Eli Lilly has given specific approval and authorization, is an example of an ethical policy statement.

Question 48

Which of the following is not a benefit of social responsibility?

A) Socially responsible companies are good corporate citizens to the community and to the environment.
B) Socially responsible companies have fewer conflicts with stakeholder groups who disagree with the company over how it uses its resources.
C) Socially responsible companies may divert needed resources for improving the business into social responsibility projects.
D) Corporate social responsibility is related to higher financial performance.

Question 49

When Colgate-Palmolive adopted a failing junior high school in Harlem and contributed funds and personnel to renovate and restructure the school, they were using which approach to dealing with stakeholders?

A) Confrontation strategy
B) Damage control strategy
C) Accommodation strategy
D) Proactive strategy

Question 50

When companies use the courts or lobby against legislation, which approach are they using to deal with a stakeholder?

A) Confrontation strategy
B) Damage control strategy
C) Accommodation strategy
D) Proactive strategy

Question 51

Organizational stakeholders

A) are only those in the external environment such as customers.
B) are stockholders.
C) may be part of both the internal or external environment of an organization.
D) are only those internal who have an interest in the organization such as employees.

Question 52

The justice approach is more flexible than other ethical approaches because it recognizes that standards of fairness vary depending on the individuals involved in the decision.

Question 53

When Levi Strauss lost market share and profits decreased in the late 1990s, shareholders blamed the CEO for

A) failing to address a social responsibility agenda.
B) focusing too narrowly on only profit maximization.
C) giving too high a priority to corporate social responsibility.
D) giving market share to Wrangler.

Question 54

When McDonald's opposes an increase in the minimum wage, which stakeholder group are they trying to influence?

A) Employees
B) Government
C) Community
D) Social activist groups

Question 55

When Ben & Jerry's Ice Cream company profits declined and the stock price decreased, the company

A) stopped its commitment to social responsibility.
B) continued its socially responsible style.
C) restructured to boost profits.
D) laid off hundreds of workers.

Question 56

Very few large companies provide ethics training to create a more ethical climate.

Question 57

The 1997 Teamsters Union strike against UPS demonstrated the power of which stakeholder group?

A) Community
B) Social activist groups
C) Employees
D) Customers

Question 58

Walmart decided not to build stores in several towns in Maine as a result of pressure from which stakeholder group?

A) Employees
B) Government
C) Community
D) Social activist groups

Question 59

The approach to dealing with stakeholder concerns that has the highest commitment to social responsibility is

A) Confrontation strategy
B) Damage control strategy
C) Accommodation strategy
D) Proactive strategy

Question 60

Organizational stakeholder groups

A) may not always have the same interests.
B) always have the same ultimate vested interests in how the organization uses its resources.
C) are consistent with management interests.
D) seldom exert pressure on management.

Question 61

How do managers misuse discipline?

Question 62

What are the eight steps to sound ethical decision making suggested by Barbara DeLong?

Question 63

Managers seeking to do business within foreign cultures that are more tolerant of bribery and kickbacks should use these practices to avoid losing business.

Question 64

To analyze the need to balance the interests of a variety of stakeholder groups, what questions should management ask?

Question 65

What is a good test of the ethical appropriateness of accepting a gift?

Question 66

Describe the four general approaches to dealing with stakeholders.

Question 67

The front-page test in making ethical choices asks "How would I feel if my decision became a headline in a local newspaper?"

Question 68

What are the benefits and costs of social responsibility?

Question 69

Describe the four key ethical approaches when making business decisions.

Question 70

Stakeholder groups have specific interests that are in agreement with the interests of management and other stakeholder groups.

Question 71

What are organizational stakeholders? Provide examples.

Question 72

How can managers influence the ethical behavior of their direct reports?

Question 73

What is a code of ethics? How does it differ from a corporate credo and an ethical policy statement?

Question 74

Few companies actually ban romantic relationships in the workplace.

Question 75

What is most likely to be included in an ethics training course?

Question 76

Discuss the impact of social activist groups on the social responsibility of organizations.

Question 77

Describe the key features that should be included in a whistleblower policy.

Question 78

What are business ethics? Are they the same thing as laws? Explain.

Question 79

Social responsibility ultimately leads to improved odds of long-term survival for the organization.

Question 80

What is social responsibility?